Editorial
Generative AI has significantly reshaped our personal and professional lives in two short years. When organizations started integrating AI, predictions were made about its impact on jobs, workplace dynamics and employee engagement. The perception that AI would drive job losses led to widespread fear of the technology, while many believed that organizations would be in a race to unlock the benefits of AI.
Below, we explore three critical areas to determine whether AI has lived up to the expectations stated two years ago.
What We Anticipated vs. Reality
Generative AI promises to transform productivity, enhance efficiency through intelligent automation, deliver responses with human-like nuance, and completely change how organizations interact with customers. While AI can deliver all these benefits, the past two years have revealed that unlocking them is far more nuanced and complex than initially anticipated.
In our own work on AI and various research studies on AI adoption, we have distilled three areas of anticipated AI impact versus the realities that inform the current state of AI.
1. AI Did Not ‘Take Our Jobs.’ But It Has Elevated Work
When AI technologies began to gain traction, many experts projected that automation would lead to widespread job displacement, with reports from the World Economic Forum estimating that over 85 million jobs could be displaced by automation by 2025. This prediction fostered considerable anxiety about the future of employment and jobs.
Contrary to these forecasts, generative AI has not eliminated jobs. Instead, it has revolutionized the nature of work. For example, companies like Zendesk and HubSpot have successfully implemented AI-driven chatbots to manage routine customer inquiries, allowing human agents to concentrate on more complex issues requiring emotional intelligence and problem-solving skills. This approach enhances overall productivity while simultaneously elevating the quality of service provided.
Moreover, a report by McKinsey & Company indicates that while 50% of work activities could be automated, only about 5% of jobs are at risk of being fully automated. Instead of diminishing roles, AI has redefined them, empowering employees to focus on strategic and creative tasks. IBM, for instance, has integrated AI into its recruitment process, using data-driven analytics to make informed hiring decisions that enhance the overall quality of talent acquisition.
AI can also enhance HR processes by providing data-driven insights, enabling professionals to focus on strategic tasks rather than administrative functions. Although AI has not replaced HR professionals, it has fundamentally changed the work of HR and the contribution of the HR function to the business.
Related Article: 3 Business Use Cases for Using AI Within Talent Management
2. Individuals Lead the Charge on Adoption, Not Organizational Mandates
Initially, it was presumed that organizations would lead the charge in adopting AI technologies, mandating their integration to improve productivity and streamline operations. We expected an “AI race,” with organizations competing to be the first to adopt and integrate AI.
In reality, individual adoption of AI tools has far outstripped adoption at the organizational level. Many employees have taken the initiative to adopt AI tools independently, often outpacing formal efforts from their employers. A survey by Gartner revealed that nearly 70% of employees reported using AI-driven tools in their daily work without any guidance from management. Where organizations have been slow to adopt, employees have started to bring their own AI to work. Microsoft stated that almost 78% of employees bring their own AI tools to work, leading to significant security and privacy concerns.
For instance, Slack has acknowledged this trend by integrating AI features that enhance user experience, such as smart replies and personalized recommendations. By supporting employee-driven AI usage, organizations can capitalize on the enthusiasm and creativity of their workforce, fostering innovation and improving operational efficiency. Companies that promote this autonomy often experience heightened employee engagement and satisfaction.
HR has lagged in AI adoption compared to other functions. However, more than half of HR professionals use AI for their day-to-day tasks at the individual level. This means that systematic adoption of AI tools is the real barrier to AI adoption in HR. Without proper engagement and understanding, AI tools have little impact beyond individual productivity.
3. AI Is More Than Its Technological Capabilities, It Can Enhance Human Connection
Early discussions surrounding AI primarily focused on its technological capabilities, emphasizing tools, implementation strategies and technical specifications.
Today, the discourse has evolved to highlight the human implications of AI integration. Organizations increasingly recognize that AI initiatives' successes depend on their ability to enhance collaboration, decision-making and overall employee engagement. A Deloitte report underscores that organizations prioritizing the human aspects of AI — such as training and support — are more likely to realize positive outcomes.
For example, Salesforce has deployed AI tools that facilitate real-time insights into team performance and customer interactions, enhancing department collaborations. By prioritizing the human element of AI, organizations can create a more connected and productive workplace, ensuring that AI is a valuable asset in improving employee experiences and driving business success.
Within HR, AI has shown real promise for enhancing employee experience and engagement through personalized learning experiences, real-time feedback and data analysis of employee sentiment. HR service centers and AI agents show further promise to enhance HR service delivery at scale.
Related Article: Reduce Uncertainty to Drive AI Adoption
How These Realities Inform the Future of AI
Two years later, these emerging realities shape the next chapter of the AI revolution. We believe it is now time for a responsible, measured approach to adoption that moves beyond the hype of the last two years. Focusing on three critical areas, we believe organizations can achieve tangible benefits that dispel misconceptions about AI usage and ensure the technology delivers a lasting impact.
- Targeted adoption in core business areas: Identify and deploy AI applications in areas that deliver the highest return on investment. This could involve using AI for predictive analytics in talent management, optimizing recruitment processes or enhancing customer interactions through chatbots. Regularly assess the effectiveness of these initiatives to refine applications based on employee feedback and evolving business needs, ensuring that AI is a powerful tool for driving significant business outcomes.
- Provide clear guardrails for adoption and embrace individual experimentation: Organizations need to provide employees with clear guidelines on what toolsets and applications of AI can be safely adopted and used internally. These guidelines will be continuously evolving, but organizations do need to provide a frame of reference for employees to guide intentional behavior related to AI experimentation.
- Cultivate continuous learning and encourage innovation: Successful AI adoption hinges on human behavior. Provide ongoing training to equip employees with the skills to leverage AI effectively, covering both technical skills and ethical considerations. Foster an environment where employees feel empowered to experiment with AI tools, and contribute ideas that align with organizational goals.
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We have only scratched the surface of how AI will change the lives of individuals and organizations. To fulfill this promise, organizations must make bold, structured commitments that foster a culture of curiosity, experimentation and openness to adoption.
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